• 4 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 9 hours British Utility Companies Brace For Major Reforms
  • 13 hours Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 15 hours Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 16 hours Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 17 hours OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 18 hours London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 19 hours Rosneft Signs $400M Deal With Kurdistan
  • 22 hours Kinder Morgan Warns About Trans Mountain Delays
  • 1 day India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 1 day Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 2 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 3 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 4 days Aramco Says No Plans To Shelve IPO
  • 6 days Trump Passes Iran Nuclear Deal Back to Congress
  • 7 days Texas Shutters More Coal-Fired Plants
  • 7 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 7 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 7 days Chevron Quits Australian Deepwater Oil Exploration
  • 7 days Europe Braces For End Of Iran Nuclear Deal
  • 7 days Renewable Energy Startup Powering Native American Protest Camp
  • 8 days Husky Energy Set To Restart Pipeline
  • 8 days Russia, Morocco Sign String Of Energy And Military Deals
  • 8 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
Alt Text

The Next Big Digital Disruption In Energy

Blockchain technology is transforming the…

Alt Text

What’s Stopping An Oil Price Rally?

Oil prices rallied in Q3…

Alt Text

Why Petrol Powered Cars Aren’t Going Anywhere

Internal combustion engines are still…

China Reshapes Energy Sector, Shifts Towards Market Economy

China Reshapes Energy Sector, Shifts Towards Market Economy

Chinese President Xi Jingping continues his efforts to reorient the Chinese economy on market principles, and a few recent developments highlight the tangible results.

First, on November 30 the Chinese government announced reforms for its electricity sector to stoke more competition in the marketplace. The move will end the monopoly power that state-owned companies have over electricity distribution. The government will expand pilot programs aimed at the cost of building transmission lines. It will also allow electricity consumers to negotiate directly with power generators.

“Direct power purchase will help restore electricity’s commodity character and is an important step toward fully opening-up China’s electricity market,” the National Development and Reform Commission said in the statement. “Direct trading will bring end users benefits.” Related: Saudi Cash Crisis Intensifies As Interbank Rates Soar

That mirrors a move only a few weeks ago in which the NRDC overhauled the price of natural gas, cutting prices in order to spur demand. The move was intended to provide an alternative to coal for electricity generation.

On a separate note, the International Monetary Fund is expected to announce on November 30 its decision to declare China’s currency, the yuan, as a reserve currency. The yuan will join a select club of currencies, consisting of only the U.S. dollar, the Japanese yen, and the British pound. The move will be finalized in 2016. Related: Oil Gains Ahead Of OPEC Meeting, Dollar Caps Growth Potential

The ascent to reserve currency status is a monumental symbol for China as a global power. But it will also reinforce pressure on China to continue to move towards a market-oriented economy. In the past, China has intervened to manipulate the exchange rate of the yuan, a reason that the currency has not been able to obtain reserve currency status until now. It has made sufficient progress in removing capital controls and opening up the economy for the IMF, it seems, but the pressure will continue.

The moves come as China plans to launch an oil futures benchmark that would compete with other markers around the world such as Brent. The launch of the marker on the Shanghai International Energy Exchange (INE) was expected in 2015, but may be pushed off until next year. An Asia-oriented oil benchmark could contribute to an ongoing shift in influence over oil markets from west to east.

By Charles Kennedy of Oilprice.com

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment
  • Len B on November 30 2015 said:
    Free...by hauling in brokers who short stocks or halting stocks for months...is that what u call free...madness to even say it

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News